Reports & Analysis

What will be the impact of the generalization of Quinn Base shares on the future of the digital currency market?


The valuation of the more than $ 100 billion Queen Base exchange and its public offering was one of the most important events that digital currency activists have been waiting for months. Now that the company is listed on the stock exchange, what awaits the digital currency market and what are the effects of this offering on the market?

to the the report Cryptocurrency has been listed on the New York Stock Exchange for a few days now. This action has been taken as part of the planning for the direct offering of the shares of this exchange in the stock exchange. This is the first time that the stock of a major digital currency business has become public.

Coin Base was valued at more than $ 150 billion by analysts and traders before it went public. Part of this significant valuation was due to the volume of transactions, revenue and profits of the first quarter of 2021 of this exchange. It is worth mentioning that this exchange has earned more than $ 750 million this year alone.

A Twitter user named Pomp shared a text about Coin Bass’s media policy in the exchange’s public offering:

The most important part of the Quinn Base public offering is that the exchange team has not interviewed the traditional media and has decided to contact their investors directly. Communicate directly with people, you do not need a third party to communicate with people.

Coin Base shares are traded on the Nasdaq Stock Exchange. This supply will be done through direct supply. Prior to the launch, Quinn Base traded above $ 577 in markets such as the FTX digital currency exchange. The following is the opinion of four supporters of the digital currency industry regarding the potential effects of the Quinn Base public offering on the digital currency market.

Credit for digital currencies

Jun Li, the founder of Ontology, believes that the public offering of the Quin Base exchange will rearrange the entire Blockchain market, even if there are other major players in the field, including centralized and decentralized exchanges. To be. It is worth mentioning that Ontology Company provides a general and high-performance blockchain in the field of data and decentralized identity.

“Lee,” he says.

We will see increasing pressure on governments to implement policies and regulations in China’s digital currency and blockchain industries. We will welcome this legislation, because we know that without regulation, the industry will not be officially recognized.

John E Deaton, a Twitter user, also wrote about the public release of Coin Bass:

Think about it; The value of the Coin Bass exchange will probably exceed the value of Goldman Sachs on its first day of trading. it is unbelievable.

Others, such as Jason Blick, CEO of EQIBank Digital Bank, say the public offering of Coin Bass provides key insights into how digital currency exchanges work and their revenue. He says:

The public offering of the Quinbase exchange will provide the transparency needed for the financial mechanism of a leading exchange. Its business model will also be under tremendous pressure.

Blake also adds:

In RTB pricing models, all large exchanges, investors’ expectations for significant long-term returns may be quickly eroded; Because low prices can lead to constant pressure on profit margins.

Eric Kapfhammer, chief operating officer and head of Polyient Capital Investment Group, a subsidiary of Planet, believes the listing of Coin Bass on the Nasdaq is the first legal bridge between traditional capital markets and the digital currency market. It is worth mentioning that Planet Capital is the NFT Market Investment Group of Planet Games (Polyient Games). “It simply came to our notice then.

My assessment is that when this public offering takes place, we will certainly see more capital flow into digital currencies and companies operating in this field.

He also adds:

From the perspective of investment flow as well as the expansion and development of new services along with its infrastructure, you can expect more maturity in this area.

Bubble?

Meanwhile, Amber Ghadda, co-founder of the AllianceBlock, a Layer 2 Blockchain protocol, says the current excitement about the public offering of Quinn Base is reminiscent of two historical events: the gold markets of the last century and valuations. Instability of companies in all markets.

Pump wrote on Twitter about Quinn Bass pricing:

The $ 250 stake in Coin Bass means the exchange is valued at less than 10 times its first-quarter annual revenue. Wall Street is on the lookout for how digital currency companies can do what they want to do.

“Amber Gada says:

Decades ago, some investors could not access gold because they did not have a commodity or derivatives market. So they invested in gold miners instead.

He adds:

Institutional and micro-investors are still considering buying CoinBase stock as an alternative to Ethereum and Bitcoin.

Gada also believes that Coin Base, with a score of 60 in the price-to-sales ratio, is probably overvalued. It is worth mentioning that other exchange offices in Nasdaq Stock Exchange are between 3 and 15 according to this index. “It simply came to our notice then.

This is another reason to prove that the traditional valuation framework no longer works and that the current taste, partly due to helicopter money (Federal Reserve stimulus packages), is not sustainable.

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